CHAMBER OF COMMERCE.

Globe, Volume XXIII, Issue 2323, 14 September 1881, Page 3

CHAMBER OF COMMERCE.

A special meeting of the Canterbury Chamber of Commerce was held on Tuesday afternoon. Present —Mr W. Chrystall (Chairman), and Messrs P. Cunningham, H. P. Murray- *ynsley, Geo. Booth, C. Louiseon, J. D. Macpherson, A. Cameron, F. Jenkins, A. C. Wilson, J. Inglia, L. E. Nathan, Harloy, Cooke, Wood, M'Dougall, Banka, Aiken, Fletcher, Wiight, Palmer and Meares.

The object of the meeting was to receive the report of the sub-committee re direct steam service with Great Britain, which was aa follows :

Ia reporting to you on this question, yonr committee would first Rive expression to its views on the merits of a direct steam service, apart from any question of subsidy. Your committee is of opinion that the establishment of such a sorvice would greatly conduce to the progress and general prosperity of the colony ; that, indeed, the timo would seem to have arrived when snch a service has become a necessity, in order to enable the colony to avail itself effectually of a profitable market for its surplus products, increasing- as those now aro in variety as well as bulk. Your committee further believe that a direct steam service with Great Britain would speedily become a channel for voluntary immigration on a scale not hitherto witnessed, and which apparently never will be while the only

means of direct communication is by sailing vessel. On the other hand, the effectual development of the exportation of meat, bntter, and cheese, for which the established success of tho refrigerating process has opened such an encouraging prospect, would seem practically impossible without the aid of rognlar and direct steam communication with England. In short, as tho colony ia so greatly dependant upon England as a market for its products, and as a source of immigration, any direct steam service that will bring the colony, in point of timo, nearer to Great Britain, would seem necessarily calculated to materially promote its highest interests. Having thus indicated some of the advantages that the colony would be likely to gain by a direct steam service, your oommittee would now refer to the conditions of the scheme which the Parliamentary committee has drawn up and recommended with a view to its inauguration. This scheme your committee regards as offering to contractors terms unnecessarily liberal, in view of the existing and apparently increasing competition among steamship owners to obtain employment, at all remunerative, for their vessels. The Parliamentary committee proposes that the colony should give a guarantee of 6 per cent, on a maximum capital of £1,000,000, a rate of interest mnch too liberal for tho present day. Provision is further made that this guarantee or subsidy shall be rednced by the annual net earn-

ings of the service; bnt, seeing that a condition is added that will permit the contractors, in reckoning their net earniugs, to write off the nnusnally liberal allowance of 10 per cent, for depreciation, your committee is of opinion that the colony could not in tho face of such an allowance, look for any deduction for earnings, but mnst be prepared to pay an annual subsidy of £60,000. Great as the direct and indirect advantages of the service wonld be, your committee is of opinion that the colony would not be warranted at the present juncture in paying snch a large sum as this in respect of a subsidy ; and it would venture to believe that a considerably smaller sum would probably afford sufficient inducement for contractors to come forward and undertake the proposed service. The practical suggestion of your committee therefore is that Government should, if possible, make arrangements for a period of two or three years, at a cost not exceeding £25,000 per annum, for the extension of one of the present Australian services to Now Zealand, or that, failing the practicability of such an arrangement, Government should proceed forthwith to advertise its requirements thoroughly in England and the colonies, and invito tenders contemplating tho payment of a certain sum as a subsidy siinply, without any condition as to participation by ;the colony in net earniugs. Your committee would also suggest that Government be recommended to enter into no agreement in the matter oxtending to any period beyond seven years from the present time, which will take ns to the probable date of the opening of tho Panama Canal. It wonld, in fact, be apparently to the advantage of the colony to enter into a contract for a short rather than a long period. The trade and passenger traffic may be reasonably expected to steadily increase, so that each succeeding year the necessity to subsidise a service at all would become proportionately less. This has indeed been the case in Australia, where there are now two unsubsidised lines in active competition with the subsidised ouo. Yonr committee concurs in the recommendation of the Parliamentary Committee that Government be authorised to take action before the

end of tlie present session; and it also concurs in the view of the Parliamentary Committee that a preference should be given, on equal terms, to any contractors that maybe fouEd within the colony ; but your committee would at the same time suggest that the attention of Government should be specially drawn to the great importance of deciding upon the merits of competing tenders strictly with regard to such a performance of the service ns should be most beneficial to the colony as a whole. Your committee does not consider that it is either necessary or advisable that ono of the stipnl-tions when inviting tenders should bo that steamers should be specially constructed for the Now Zealand trade, ror in view of the present large number of steamers seeking employment, it is likely that such a stipulation would tend greatly to deter owners from competing. If specially built steamers are insisted the object of inviting competitive tenders would be practically defeated. It would be desirable to recommend to contractors the use of New Zealand coal for the voyages from tho colony, this coal being admittedly unrivalled 4or steam purposes. In conclusion, y>">nr committee would add that, so far as it has been able to judge from the figures within its reach, the Parliamentary committee has apparently not over-estimated the matter of outward freight. Opinions differ, however, as to tho quantity of frozen meat, of which the Parliamentary committee has mentioned that 500 tons per month would be forthcoming for shipment from tho whole colony. In tho limited timo at the disposal of yonr committee, it lias been able to gather from the best sources of information that

in the existing state of things, the Canterbury district could probably afford to export abont 5000 fat sheep per month, for six to nine months of the year. Taking the average net weight of the carcass at GOlb, there would thas be about 130 tons per month available for six to nine months of the year, or about 1000 tons per annum from Canterbury. Respecting the snpply of beef, it has not been found so easy to make an estimate, hut your committee have learned from the same sources that the

supply of fat cattle at present offering is much in excess of local requirements, not only here but in other parts of the colony. As soon as opportunity is afforded for shipping by steamer direct to London, under the refrigerating process, it is reckoned that prices of mutton and beef will simultaneously advance Jd to Id per lb, and, while this advance would apparently still leave a margin of profit to shippers, the impetus given to the raising and fattening of stock would no doubt be very grett.—By order of the committee. W. CmtYSTALL, Pros dent.

The Chairman moved the adoption of the report as the expression of the views of this Chamber on tho question, and that a copy of tho same be forwarded to tho Government. In speaking of the motion he tnado the following remarks :—Thero are one or two points to which I should like to draw the attention of the meeting. Tho recommendation of the Parliamentary committee is that the equivalent of -fioO.OOO be paid as a guarantee or subsidy. This amount your committee have—very properly, I think regarded as more than shonlrl or need be paid in order to secure all that is required. In the case of the older and more important trade routes, such as thoHC to India and China, and even Australia, competition has beau very active, and apparently increasing for years past; and at the same time tho building of steamers hss gone on as actively as ever. The result of this would seem to be that steamboat owners are ready to turn their steamer 3 in any direction where there is any reasonable prospect of a remunerative trade baing developed. In view, therefore, of the existing prospect in regard to trade between this colony and England, t think it will bo somewhat ex'raordim-.ry if the subsidy of .£25,000, which your committee has named, be not found sufficient to attract suitable steamers in this direction. There is also an apparent objection to the scheme of the Parliamentary oommittee, in the fact that it does not contemplate the commencement of the proposed service until eighteen months or two years from the present date. If it has been shown beyond all question, and I think all will agree that it has, that the shipment of frozen meat by the refrigerating process is an established success, it would seem a great pity that the colony should

not until two years hence be permitted to share in the profits of the enterprise. There can be no doubt, I think, that if the means of shipment were available a considerable quantity of meat would be forthcoming; and not only the farming and stockowning interests, but the colony generally, I believe, would be greatly benefitted by the development of a trade in this article. Then there is the matter of immigration. The very limited share which this colony obtains of the stream of population that ia constantly flowing from Great Britain to new countries ia no doubt greatly due to the long voyago and the discomforts inseparable therefrom; and it therefore seems very desirable that there should boas soon aa possible arrangements given for the starting of a service by which a worthy cla=s of settlors could be more easily induced te come totho colony. Another apparently undesirable feature in the Parliamentary committee's report, is the fact that specially built steamers are thought necessary. In thia I think a wrong conclusion has been arrived at, and the mistake thus marie would seem to involve the two undesirable features I have already mentioned—namely, the large proposed aubaidy of .£60,000, and the delay of two yeara in the commencement of the service. Specially built steamers must necessarily entail increased expense to the colony, as no contractor could be expected to get steamers specially built without some extra consideration in reapect of subsidy, or in the terms of his contract. In specially built steamers of light draught of water, aa is proposed, some sacrifice of carrying capacity or seaworthiness might also be involved. The recommendations of your committee that Government should be authorised to offer a subsidy of not exceeding .£25,000 for the extension of one_ of the Australian services to New Zealand is one I think that should merit the early and favorable con. sideration of the Legislature, so that the colony may be in a position to avail itself soon of the possibilities which now present thomselves for increasing the value of its exports, and for contributing to its prosperity in other ways. Mr Cunningham seconded the motion, expressing perfect concurrence in the remarks of the chairman, who dealt with the subject most I exhaustively.

Mr Macpheraon, one of the members of the committee, who had given this matter consideration, spoke at some length to show, by statistical illustration, how the committee had arrived at the conclusion now submitted to the Chamber. He criticised the recommendations contained in the report of the Parliamentary Committee, and showed that they were of a character altogether too extravagant—further, that they were really impracticable in the colony's present position. In the event of the recommendations of the committee of the Chamber being carried out, he thought it would be well; but should the other view be adopted, he thought a bimonthly service would be ample, and certainly much preferable from an economical point of view.

Mr Booth asked what porta the steamer would tonoh at in her trips to and from this colony. The Chairman understood it to be the intention that the steamer would come here on leaving Melbourne.

Mr Nathan regarded as doubtful the advantages of the proposals in the report under notice. He thought we were already well sunplied with means of communication without paying a large subsidy for the intercolonial service.

The Chairman pointed out that the committee had considered this matter in view of the advantages to be derived by increased facilities that would be offered to develope certain colonial industries —the frozen meat traffic for example. Mr H. P. Murray-Aynsley thought the report not sufficiently explicit. The committee might with advantage have gone further into details aa to the character of the service required, the rates for traffic, and the question of apeed, all of which considerations were of great importance. The Chairman said the committee assumed, with regard to passenger traffic, for instance, that the rates of the Orient would obtain, and they were considered sufficiently reasonable. Then, with regard to the rate for cargo—say presorved meat—if they were too high there would be no shipments. The committee did not think it necessary to enter into those matters of detail. They made certain recommendations in opposition to the apparently extravagant scheme of the Parliamentary Committee. It would be for tho Government to make its own terms.

Mr Harley suggested that the subsidy should be gven on such conditions as would encourage emigration and induce the company contracting to interest itself in that direction.

The Chairman remarked that this was clearly set forth in the report as one of the advantages to be derived from the proposal. Mr Cunningham thought some members labored under a misapprehension. The committee did not intend this as an opposition mail service.

Mr Nathan was indebted to the last speaker for his explanation. He now opposed the report on the ground that it proposed to subsidise a particular class of trade. If this principle were admitted they might have agriculturists and other industries claiming the same consideration. If the meat trade, say, would not itself warrant the introduction of steamers, to subsidise them for the purpose would, in his opinion, be false economy. The Chairman pointed out that in this matter they were at one with the Parliamentary committee, and had laid stress on the advantage of encouraging this particular traffic, but only, it should be remembered, as one of the advantages contained in their recommendations. Mr A. C. Wilson said it waß quite evident that the terms proposed by the Parliamentary committee were far moro liberal than ihe circumstances of the c»Be demanded. The average duration of the period during which a steamer lasted was much nearer twenty years than ten, so that an allowance for depreciation of 10 per cent, per annum on the original cost of the boats was far too high a rate, and might reasonably be reduced by one-half. The contractors for the steam service would, in the adjustment of accounts against the Government, be thus entitled to place on one aide out of profits the yearly sum of .£IOO,OOO before the colony could save a pound out of the proposed subsidy of .£60,000 par annum. A company on obtaining a contract such aa now proposed could probably obtain money at 4 per cent, per annum, whereas the colony would be paying the contractors C per cent, per annum, the result being an amount of .£20,000 to the benefit of the latter. Mr Nathan moved as an amendment—" That thia Chamber ia of opinion that tho recommendation of the Parliamentary committee to subsidise a d'rect steam service to the colony is of an extravagant character, and one which, in the present position of the colony, they would not be warranted in adopting." Mr Inglis and other members pointed out that thia was not an amendment on the motion, seeing that a clause in the report expressed in substance an opinion exactly similar. The Chairman ruled that he could not accept the amendment.

Mr Inglis remarked, in reference to the objection that they were going to subsidise a particular industry, that the frozen meat question was only one of many affected. It was absurd to suppose otherwise, seeing that the amount of export contemplated under that head alone would not pay any vessel to come for. Mr Fletcher heartily endorsed the recommendations of the report as to the desirability of affording facilities for traffic in meat and butter and cheese, &c.

Tho resolution to adopt the report was then put to the meeting and carried. This concluded the business.